Arevon, Blackstone: $350M Energy Storage Financing | Solar Spotlight

In this edition of the Solar Financing Spotlight, Arevon Energy and Blackstone have joined forces for a significant 200 MW / 800 MWh energy storage project. Additionally, Aggreko and 38 Degrees have successfully secured funding for project acquisitions. Stay tuned for these developments and more in the latest update on solar energy financing.

Renewable energy developer Arevon Energy Inc. and Blackstone Credit & Insurance (BXCI) have finalized the financing for the Condor Energy Storage Project, a 200 MW / 800 MWh facility currently being constructed in Grand Terrace, California.

The upcoming project is expected to commence operations in the second quarter of 2024 and is under a 15-year contract with Southern California Edison. It is designed to offer firming capacity, bolster grid reliability and stability, and support the growing use of renewable energy sources. The Condor project incorporates Tesla’s Megapack 2 XL, a utility-scale battery system, with Tesla responsible for operations and maintenance (O&M) services. Rosendin Electric, Inc. serves as the engineering, procurement, and construction (EPC) contractor for the project. Arevon will assume long-term ownership and operation of the project.

Blackstone’s preferred equity investment in Condor has been structured to streamline the process of monetizing tax credits, eliminating the necessity for conventional tax equity financing.

Zachary Rubenstein, managing director in the Blackstone Credit & Insurance Sustainable Resources Group, expressed enthusiasm about partnering with Arevon for the Condor financing, stating, “Arevon is a top-tier renewable energy company. Blackstone recognizes the significant demand for comprehensive financing solutions in the energy transition sector and eagerly anticipates collaborating with Arevon on upcoming ventures.”

The funding comprises a pledge from Stifel Financial Corp. to acquire investment tax credits and is reinforced by a $164 million debt facility arranged by Coordinating Lead Arrangers CoBank ACB, Helaba, and Sumitomo Mitsui Banking Corp. The Bank of New York Mellon acted as the Collateral and Administrative Agent. Additionally, Arevon obtained real estate financing from the climate investment firm HASI for the land associated with the Condor Energy Storage Project.

Daniel Murphy, Arevon’s director of project finance, emphasized, “The Condor project showcases our dedication to creating resilient grid assets and our team’s proficiency in managing intricate, hybrid financing structures. Together with our partners, we are dedicated to spearheading climate finance innovations that advance a sustainable and clean energy future.”